Guangdong introduces the first national carbon emission quota pledge financing system with judicial protection in China.

The High People's Court of Guangdong Province, the Department of Ecology and Environment of Guangdong Province, and the Guangdong Branch of the People's Bank of China recently jointly issued the "Several Opinions on Promoting Carbon Emission Quota Guarantee to Assist Green Financial Development", providing systematic judicial protection for the first time nationwide for carbon emission quota pledging financing. The "Opinions" issued this time set out 13 specific provisions from aspects such as dispute resolution, emission reduction incentives, evaluation supervision, and guarantee innovation. To reduce the risk of disputes in carbon emission quota pledging financing, the "Opinions" clarify that carbon emission quotas are legitimate pledged objects, and have legal effect once registered on the provincial trading platform. To plug the loopholes in pledging, the "Opinions" specify the dual registration model of "People's Bank of China movable financing unified registration and publicity system + provincial trading platform", and prevent asset transfer risks through the real-time freezing function of the trading platform. The "Opinions" also specify the need to strengthen judicial services and protection, lawfully maximize the effectiveness of carbon emission quota pledging contracts, strictly determine situations where contracts are invalid, and establish a rights protection mechanism of "priority negotiation before litigation, litigation as a last resort". If negotiation fails, the court will legally support the parties in realizing their rights through litigation.